Unit owners need to purchase landlord insurance as separate policies to the strata insurance. Landlord insurance provides insurance protection for your liability as a landlord. In addition the insurance provides for landlord’s contents, loss of rent by an insured peril and other benefits.
Residential strata
Residential strata insurance provides lot owners, developers and managers of strata properties with comprehensive protection specifically pertaining to living in a strata community.
Residential strata insurance policies cover material damage as a result of insured peril to structural fixtures including fixed plant, machinery and underground services.
Holding strata insurance is mandatory under each state’s relevant strata legislation. However, each state and territory has different legislative requirements that deal with insurance for strata title properties.
Our dedicated strata insurance brokers will always check that your insurance meets those legislative requirements.
For personal advice specific to your particular strata property circumstances, please give us a call on 1300 424 627 to speak to our team of strata insurance specialists.
Please note: The information on this page is a summary of common residential strata insurance policy features. The list is not exhaustive and should only be considered as general advice. It is not intended to take the place of personal advice. Before acting on this information you should consider the appropriateness of this general advice to your particular objectives, needs and financial situation.
Features to consider
Building Replacement
& Reinstatement
Provides cover for the building structure and any fixtures and fittings in Common Property areas.
Public Liability
Covers the legal liability of the Owners Corporation. This does not insure the liability of the unit owner, except where liability relates to the Owners Corporation’s property or common contents.
Common Contents
Covers appliances, equipment, furniture, fittings and works of art in any common area for which the Owners Corporation is responsible.
Personal Accident for Voluntary Workers
Provides compensation to any person who voluntarily works on behalf of the Owners Corporation. The volunteer worker’s name must be recorded in the books of the Owners Corporation.
Loss of Rent and/or Alternative Accommodation
If a unit becomes uninhabitable as a result of an insured peril, the unit owner can claim for loss of rent or alternative accommodation during the period that the premises are unfit for occupancy, based on the rental value of a unit.
Fidelity Guarantee
Protection for the Owners Corporation against fraudulent embezzlement or fraudulent misappropriation of the Owners Corporation’s funds and tangible assets.
Office Bearers
Protects the members of the committee where liability has arisen from an alleged or wrongful act, omission or breach of duty. Covers the liability and legal costs up to the sum insured. Fraudulent acts are not insured under this insurance policy. This is an optional cover and an additional premium will apply.
Machinery Breakdown
Provides cover for sudden or unforeseen physical destruction / damage to machinery. This is an optional cover and an extra premium will apply.
Catastrophe
Provides an additional sum where the building is considered a total loss or partial loss due to catastrophe where a state of emergency is declared such as an earthquake, bushfire, tsunami or cyclone. NB: Coverage varies for this feature. Some insurers provide automatic catastrophe cover (eg, 15% of building sum insured), while others will charge a premium to offer a selected percentage of the sum insured (eg, 15% or 30%). Catastrophe cover is a specialised policy feature and should be discussed by the Owners Corporation if protection has not been purchased.
Specialist
Lia de Sousa
Residential Strata
FAQ's:
Strata insurance policies generally cover material damage as a result of an insured peril to structural fixtures including fixed plant, machinery and underground services. They also generally extend to provide cover for proprietors’ fixtures, fittings and improvements which form part of the building. Some of these items include built-in ovens, stovetops, kitchen cupboards, hand basins, baths, showers and spas and pools in common areas.
Strata insurance specifically excludes contents within individual units such as carpets, curtains, blinds, light fittings and electrical appliances not actually wired into the premises. These items should be insured by your contents insurance or landlord insurance policy.
The law requires that buildings are insured for full replacement and reinstatement value. An owners corporation should obtain valuations of the buildings it is required to insure. A prescribed owners corporation must obtain a valuation every five years of all buildings that it is required to insure, and present the valuer’s report at the next general meeting.
The flood definition has been standardised for all ‘retail’ products which includes residential strata. Refer to your insurer’s Product Disclosure Statement for a full definition.
Strata insurance policies do provide storm cover but generally do not automatically provide flood cover. Flood cover may be requested by strata owners, however insurers will assess their willingness to offer flood cover based on the location of property and the proximity of rivers, lakes and dams. This extension of cover, if granted, will attract an additional premium.
As an owner occupier of a unit, you should arrange cover for your furniture, personal contents, jewellery, collections and other special items. Personal contents Insurance policies provide legal liability protection for any third party injuries or damage to third party property that may occur anywhere in Australia. If you are a tenant, your contents and public liability are not covered by the landlord’s insurance policy. Tenants should arrange their own contents insurance.
Prompt notification of any fire, accident, theft, malicious damage or injury, which may lead to an insurance claim is of the utmost importance, contributing towards achieving a speedy settlement from the insurers.
The provision of as much detail as possible when reporting incidents on the insurance claim form is of equal importance to avoid delays. We’ve created a claims checklist to assist you prepare your claim. See our Claims page.
If you need to notify us of a claim, please fill out our online claims lodgement form or contact our Claims Department by phone on 1300 424 627.
If your property is professionally managed, contact your strata manager and they will advise you of the procedures for lodging a claim. Strata managers wishing to lodge a claim on behalf of their client should also use our online claims lodgement form.
Should you require a Certificate of Currency or need to note the interests of a Mortgagee on the building policy, please fill in the online application. A $44 fee applies for a Certificate of Currency which can be paid for using our online payment facility. Certificates will be issued within three working days. Please contact our office by phone should you require a certificate urgently. A fee of $66 applies.
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